Hi all first let me say this site's great lots of useful info anyways. I want to purchase my first home and lease it out, I am thinking of using a real estate agent to be my landlord, because I'm joining army so I will be gone for about 8-10 years so when I come back my house will be pretty much paid off. So can I do that? what would I require to make this possible and how much money would involved?
Thanks
JasonBroad questions, Jason!
First, I don't think you'll get any First Home buyer grant as you aren't going to live in the house for 6 of the first 12 months.
Terminology wise, you will be the landlord but you will have to get an agent to manage it for you. Local agent is best. A tip, ring a local agent asking to see a house they currently have advertised. (ie pretend to be the prospective tenant.) See how keen they are to help you view the house, if they ask for references, check if they ring your referees!
I'm sure you will be negatively gearing the house, ie you will have to pay something every week to add to the tenant's rent, which may be fine for you. Look at Australian Property Investors magazine in newsagency, check suburbs in the back and look for a higher return eg 5%. (Which means you don't have to pay a fortune out of your own pocket. Your life may change eg family over that time period.) I'd suggest NOT to buy a new house. You'll be emotionally attached, upset when carpets stained etc. Look for a house with some add value potential eg reno down the track. This would improve you capital gain.
Talk to an accountant re negative gearing, how much tax you'd have to pay if eg rented 8 yrs, lived in 5 yrs, then sell. (Subject to some capital gains tax as it was a rental property.)
That's a start!
quickchick
You must be logged in to reply to this topic. If you don't have an account, you can register here.
